Canada Makes History: First Spot XRP ETF Launches on Toronto Stock Exchange.

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19 Jun 2025

On June 18, 2025, Canada cemented its position as a global leader in cryptocurrency innovation by launching the world’s first spot XRP exchange-traded fund (ETF) on the Toronto Stock Exchange (TSX). Managed by Purpose Investments, a Toronto-based asset manager with a proven track record in digital asset products, the Purpose XRP ETF (ticker: XRPP) offers investors regulated, direct exposure to XRP, the native cryptocurrency of the XRP Ledger. This landmark event marks a significant milestone for the cryptocurrency industry, bridging the gap between traditional finance and decentralized digital assets. In this blog, we’ll explore the details of the ETF launch, its implications for investors, the regulatory landscape, and the broader impact on the global crypto market.

The Dawn of the Purpose XRP ETF

Purpose Investments, a pioneer in crypto-based financial products, made headlines in 2021 when it launched the world’s first spot Bitcoin ETF. Building on that success, the firm has now introduced the Purpose XRP ETF, which began trading on June 18, 2025, under three ticker symbols: XRPP (CAD-hedged), XRPP.B (CAD non-hedged), and XRPP.U (USD). The ETF is designed to provide investors with direct exposure to XRP’s price movements without the complexities of managing crypto wallets or navigating unregulated exchanges. By holding actual XRP tokens in institutional-grade cold storage, the fund ensures a secure and transparent investment vehicle that tracks the spot market price of XRP.

The ETF’s structure allows investors to integrate XRP into their portfolios through familiar brokerage accounts, including registered accounts like Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). This tax-efficient approach makes the Purpose XRP ETF particularly appealing to Canadian investors seeking to diversify their holdings with digital assets. According to Purpose Investments, the ETF’s launch reinforces Canada’s leadership in building a regulated digital asset ecosystem, offering a model for other jurisdictions to follow.

The announcement of the ETF’s approval by the Ontario Securities Commission (OSC) sparked significant market enthusiasm, with XRP’s price rising nearly 7% in the 24 hours following the news, reaching $2.32. This price surge outperformed Bitcoin and the broader CoinDesk 20 Index, signaling strong investor confidence in XRP’s future prospects.

Why XRP? Understanding the XRP Ledger.

To appreciate the significance of the Purpose XRP ETF, it’s essential to understand XRP and its role in the global financial system. XRP is the native cryptocurrency of the XRP Ledger (XRPL), an open-source, decentralized blockchain launched in 2012. Unlike Bitcoin, which relies on proof-of-work mining, the XRPL uses a Federated Consensus mechanism, enabling fast and cost-efficient transaction settlements. The ledger is designed to facilitate cross-border payments, value transfers, and various financial applications, making it a favorite among institutions seeking to streamline global money transfers.

XRP, created by Ripple Labs, is widely used for its speed and low transaction costs, with settlements occurring in seconds compared to minutes or hours for other blockchains. The XRP Ledger also includes a built-in decentralized exchange (DEX) and supports tokenization, providing a robust framework for developers and businesses to create financial tools. With a market capitalization of $136.5 billion, XRP ranks as the fourth-largest cryptocurrency, underscoring its prominence in the digital asset space.

Ripple Labs, the company behind XRP, has forged partnerships with over 300 financial institutions worldwide, integrating XRP into payment networks for cross-border transactions. This strong connection to traditional finance positions XRP as a bridge between blockchain technology and mainstream financial systems, making it an attractive asset for institutional and retail investors alike.

Canada’s Progressive Stance on Crypto ETFs

Canada’s approval of the Purpose XRP ETF highlights its forward-thinking approach to cryptocurrency regulation. Unlike the United States, where spot XRP ETFs remain under review by the Securities and Exchange Commission (SEC), Canada has established a flexible and transparent regulatory framework for digital assets. The OSC’s greenlight for the Purpose XRP ETF follows its approval of spot Bitcoin and Ethereum ETFs in 2021, as well as a spot Solana ETF earlier in 2025. These moves demonstrate Canada’s commitment to fostering innovation while prioritizing investor protection.

Vlad Tasevski, Chief Innovation Officer at Purpose Investments, emphasized the OSC’s role in advancing Canada’s digital asset ecosystem: “The OSC’s granting of a receipt for the Purpose XRP ETF prospectus reinforces Canada’s global leadership in building a regulated digital asset ecosystem.” This regulatory clarity has enabled Canada to outpace other jurisdictions, including the U.S., where ongoing legal battles between Ripple and the SEC have delayed spot XRP ETF approvals.

The Purpose XRP ETF is not the only XRP-focused product in Canada. On the same day, crypto asset manager 3iQ launched its own XRP ETF (ticker: XRPQ) on the TSX, with a 0% management fee for the first six months. Notably, Ripple Labs is an early investor in 3iQ’s XRPQ vehicle, signaling strong industry support for Canada’s crypto initiatives. The simultaneous launch of two XRP ETFs underscores the growing institutional interest in XRP and Canada’s ability to attract capital in the digital asset space.
Implications for Investors

The Purpose XRP ETF offers several benefits for investors, particularly those hesitant to engage directly with cryptocurrency exchanges. Here are some key advantages:

•Regulated Access: The ETF provides a secure, regulated way to gain exposure to XRP without the risks associated with unregulated platforms. By holding XRP in cold storage with institutional-grade custodians, the fund mitigates concerns about hacks or mismanagement.

•Tax Efficiency: Canadian investors can hold the ETF in registered accounts like TFSAs and RRSPs, benefiting from tax-advantaged growth. This feature makes the ETF an attractive option for long-term investors seeking to diversify their portfolios.

•Liquidity and Accessibility: The ETF trades on the TSX, allowing investors to buy and sell shares at prevailing market prices through standard brokerage accounts. This eliminates the need to navigate complex crypto exchanges or manage private keys.

•Transparency: The ETF’s structure ensures that its share price closely tracks XRP’s spot market value, with arbitrage mechanisms in place to maintain alignment. This transparency gives investors confidence in the fund’s performance.

However, investors should also consider potential risks. XRP’s global spot volume lags behind Bitcoin and Ethereum, which could result in wider bid-ask spreads in the early stages of the ETF’s life. Additionally, XRP’s price volatility, as noted in the case of the U.S.-based Teucrium 2x Long Daily XRP ETF, could impact the fund’s performance. Investors should carefully assess their risk tolerance before allocating capital to the Purpose XRP ETF.

Global Context: The Race for XRP ETFs

Canada’s launch of the Purpose XRP ETF places it ahead of the U.S., where spot XRP ETFs are still awaiting SEC approval. Several U.S.-based firms, including Bitwise, Grayscale, Franklin Templeton, and 21Shares, have filed proposals for spot XRP ETFs, but regulatory hurdles persist due to the SEC’s ongoing litigation with Ripple Labs. The SEC has argued that XRP is an unregistered security, a claim that Ripple disputes. A 2023 court ruling stated that XRP trades on secondary markets are not securities transactions, boosting optimism for ETF approvals, but the SEC’s potential appeal introduces uncertainty.

Despite these challenges, market observers are optimistic about the prospects for U.S. spot XRP ETFs. Bloomberg analyst Eric Balchunas estimated an 85% chance of approval in 2025, citing a more crypto-friendly regulatory environment under the incoming Trump administration. In April 2025, Teucrium Investment Advisors launched the first U.S.-traded XRP ETF, a 2x leveraged product (ticker: XXRP), but it relies on swap contracts rather than direct XRP holdings, making Canada’s spot ETF a more straightforward investment vehicle.

Elsewhere, XRP exchange-traded products (ETPs) have been available for years. In Switzerland, 21Shares offers the AXRP ETP, which tracks XRP’s performance and is listed on SIX Zurich and Frankfurt’s Xetra exchange. In Brazil, Hashdex and Genial Investimentos launched the world’s first spot XRP ETF (ticker: XRPH11) in April 2025, trading on the B3 Stock Exchange. These developments highlight the global demand for regulated XRP investment products and position Canada’s Purpose XRP ETF as part of a broader trend toward mainstream crypto adoption.

Market Impact and Investor Sentiment

The launch of the Purpose XRP ETF has generated significant buzz in the crypto community, with posts on X reflecting bullish sentiment. One user described the ETF as a “paradigm shift for regulated crypto access,” noting its availability in CAD and USD and its appeal to both retail and institutional investors. Another called it a historic moment, predicting that “institutional money is coming” and that “the floodgates may be opening.”
On-chain data supports this optimism. According to recent reports, around 2,700 whale addresses now hold over 1 million XRP, the highest in the token’s history. Additionally, the number of active XRP addresses surged to 295,000 per day in the week leading up to the ETF launch, compared to an average of 35,000–40,000 in previous months. This spike in activity suggests growing investor interest and confidence in XRP’s potential.

Analysts are also bullish on XRP’s price trajectory. Some predict a near-term rebound to $2.6, with the potential to double to $5 as institutional adoption accelerates. However, XRP’s recent performance has been mixed, with losses of 7.4% over the past 30 days and 4% year-to-date. The ETF’s launch could serve as a catalyst for breaking out of this range, particularly if global market conditions improve.

Broader Implications for the Crypto Industry

The Purpose XRP ETF’s launch has far-reaching implications for the cryptocurrency industry. First, it signals growing institutional confidence in digital assets, as evidenced by Ripple Labs’ investment in 3iQ’s XRPQ ETF and Purpose Investments’ commitment to crypto innovation. Second, it underscores the importance of regulatory clarity in fostering mainstream adoption. Canada’s proactive stance contrasts with the U.S.’s slower progress, potentially attracting more capital and talent to its crypto ecosystem.

Third, the ETF could pave the way for additional spot crypto ETFs, including those for Solana, Litecoin, and Cardano, which are also gaining traction. Canada’s approval of a spot Solana ETF earlier in 2025 suggests that regulators are open to expanding the range of digital assets available to investors.

Finally, the ETF’s success could influence global regulators to accelerate their own crypto frameworks. As jurisdictions like Asia and the Middle East observe Canada’s model, they may launch their own XRP ETFs, creating a domino effect similar to the global uptake of Bitcoin ETFs following their U.S. approval in 2024.

Conclusion: A New Era for XRP and Crypto Investing

The launch of the Purpose XRP ETF on June 18, 2025, marks a pivotal moment for XRP and the broader cryptocurrency industry. By offering regulated, direct exposure to XRP through a familiar investment structure, the ETF bridges the gap between traditional finance and decentralized assets, making it easier for investors to participate in the digital economy. Canada’s progressive regulatory approach, combined with Purpose Investments’ expertise, positions the country as a global leader in crypto innovation.

For investors, the ETF offers a secure, tax-efficient, and accessible way to gain exposure to XRP’s growth potential, though risks like price volatility and liquidity constraints should be carefully considered. For the crypto industry, the ETF’s launch signals a new era of institutional adoption and mainstream acceptance, with ripple effects likely to be felt worldwide.

As XRP continues to gain traction in global payments and financial applications, the Purpose XRP ETF could serve as a catalyst for further price appreciation and market maturity. Whether you’re a seasoned crypto enthusiast or a traditional investor exploring digital assets, the launch of Canada’s first spot XRP ETF is a development worth watching closely.